Asian stocks slide after big losses on Wall Street

Asian stocks have slumped as concerns about higher US interest rates and a global trade war prompted investors to sell.

Markets in Asia took their cue from US stocks, which suffered their sharpest one-day falls in months on Wednesday.

By the end of trade in Japan, the benchmark Nikkei 225 index had lost 3.9%, to close at 22,590.86 points.

In China, the Shanghai Composite lost 5.2%, while Hong Kong's Hang Seng closed down 3.5%.

The US Federal Reserve raised rates in September, in response to solid economic growth, and hinted that another rise could be coming before the end of the year.

Higher interest rates make borrowing more expensive, slowing economic activity and hurting investor appetite for risk.

A US-led trade war against China has also made investors worried about the outlook for global growth.

Elsewhere, South Korea's benchmark Kospi index lost 4.4% to close at 2,129.67, and Australia's S&P/ASX 200 lost 2.7% to end at 5,883.8.

US markets have done better than expected this year, bouncing back after turmoil early in the year to set new records over the summer.

But the Federal Reserve is raising interest rates, with more hikes likely to come.

The Fed last month abandoned its description of its policy as "accommodative", reflecting a view that the economy is strong enough not to need the kind of stimulus it received in the after-math of the financial crisis.

Asia benefited from low interest rates globally post-crisis, as investors sought to put their money in markets offering higher returns.

The prospect of dwindling US stimulus has been compounded by a trade war between the world's two largest economy - which the IMF has warned could harm growth.

US President Donald Trump has been particularly critical of the Fed's rate rises, breaking with tradition in the US where presidents are expected to respect central bank independence.

"The Fed is making a mistake," he told reporters on Wednesday. "I think the Fed has gone crazy."

The stock market fall came ahead of America's latest corporate earnings season, when companies will provide updates to investors about their outlook for the rest of the year.